Researching Tourist Researching Tourist Behaviour: Behaviour:

Marketing ResearchMarketing Research

The data on consumer behaviour…

Qualitative Quantitative

The problem involved in collecting & interpreting this data.

Focus Points

“Marketing Research” VS. “Market Research”

Marketing Research the collection of data with the single intention of using it to make an organization’s marketing activities more effective.

→ the systematic gathering and analysis of data to provide relevant information to aid decision-making

Market Research is applied, action-based research To acquire information about market situation (Trends)

E.g. Competition, Economic situation (employment, income level of Thai people)

Focus Points:

Sources of information

1) Internal source – internal information which held by the organization , including:

Customer records

Guest history

Departmental reports

Marketing and sales report

2) External source – external information can be collected via internet and publications including :

International and national government organizations

Marketing research organizations

Company annual reports

Trade associations

Hospitality Industry trade press

Financial press

Universities and academic publishers

Secondary data collection

Secondary (desk) data are data that have already been collected It is relatively easy to obtain secondary data since the information has

already been published Limitations to secondary data include:

data have been collected and analysed by another organization some organizations may deliberately manipulate data other organizations may have inadvertently introduced bias information is generally available to competitors secondary data and analysis can often be ‘dated’ because of the long

time between carrying out the research and publishing the findings

Primary data collection

Primary data consist of original information collected by an organization for a specific purpose.

The data have not been published before. The organization conducting or commissioning the research determines

the research objectives and research questions. Data are collected directly to provide answers to those questions. Primary research is usually more costly than the secondary research. Advantages of primary research include the following:

The ability to frame the research questions to the needs of the organization

Research is current and not dated Research is confidential

Primary data can enable a hospitality company to gain competitive advantage if competitors are not carrying out similar research.

Quantitative Research

The findings are descriptive, empirical and if collected randomly (using a probability sample), can be generalized to larger populations.

Can be computer-analyzed E.g. How many people use certain products, or how

f r e q u e n t l y t h e y u s e t h e m . → the number of customers, passengers, residents, diners, room nights, room occupancy

Consumer Research Methodology

Quantitative research methods

Exit surveys Mystery customer audits Telephone surveys Online surveys Omnibus surveys

Qualitative Research

Consist of depth interviews, focus group, observation, qualitative questions in surveys

Findings cannot be generalized to larger populations as the sample sizes are necessarily small.

The techniques have roots in psychoanalytic & clinical aspects of psychology

Stress open-ended and free response types of questions Respondents spend a significant amount of time face-to-

face with a highly trained professional interviewer-analyst High-cost small group of sample the findings are not

projectable to the market place Eg. New ideas for products or promotional campaigns

Consumer Research Methodology

Closed and open-ended questions

Closed questions provide a number of alternative answers from which the respondent chooses one answer, for example questions about: respondent’s age, sex, employment, income

Closed questions use a structured format which creates a data set thatcan be efficiently analysed using statistical methods.

Closed questions are essential if a quantitative research method is used

Open-ended questions allow respondents to provide their own answers, Examples include ‘Where would you stay tonight if this hotel was fully booked?’ and

‘How did you feel about the quality of service?’ Open question allows respondents to use their own words to describe their

experience, feelings and opinions. Qualitative research findings using open questions provide ‘rich’ data Researchers usually ask a combination of both closed and open questions

and combine qualitative and quantitative analysis.

Compare Le Meridien and Malmaison in-room customer questionnaires

Online Research

Advantages of online research include: significant cost savings in the design and

administration of questionnaires and discussion groups

the ability to accurately target surveys to current, former or potential customers.

Often, customers are incentivized to participate in online surveys

Post- consumption e-surveys provide customers with a convenient tool to give feedback on service quality and customer satisfaction.

Tools such as blogs and social networking sites are useful to obtain unsolicited such for customer- generated comment

The Internet is available to all sizes of hospitality companies.

1. To provide opportunities to develop new product2. To set price3. To ensure the distribution network is working4. To select the best promotional techniques & appropriate advertising

media5. Subdivide the whole market into segments6. To provide customer service in the light of customer comments7. To review & change brand and logo8. To make decisions about investment in new facilities9. To choose location for new business10. To indicate opportunities for diversification

The Purposes of Gathering Data

Variety of data on tourist behaviour is required including;

1. Statistical profiles of tourists age, gender, income, marital status, occupation

1. Statistical records of tourist behaviour Where tourists like their holiday When do they take vacation How much they spend on their holiday How many trips they take each year

1. How tourists make purchasing decisions2. Who make the purchase decision3. When the purchase decision is made

Variety of Data on Tourist Behaviour

6. Consumer perceptions

Perception leads to actual behaviour6. Tourist satisfaction7. The identification of trends in tourist behaviour8. Segmentation criteria9. Product positioning in relation to competitors10. The attitude of non-users

To gain new customers

Variety of Data on Tourist Behaviour (cont.)

12. Cultural & national differences in tourist behaviour

International companyI. ‘Hard’ differences such as variationis in the main holiday season

datesII. ‘Soft’ differences such as attitudes toward service and the desire

for particular types of facilities.12. The link between the consumer behaviour of tourists and

their purchase of products People do not buy vacations in isolation from how they

purchase other products. (lifestylespurchase behaviour)

Variety of Data on Tourist Behaviour (cont.)

Problems involved in the collection & interpretation of the gathered data

1. The difficulties in identifying & measuring tourism Domestic tourism: tourists do not cross any national boundaries

1. The disagreements on how long one has to stay away from home before one is a tourist At lease one night away from home (exclude day-trips)

1. Tourists can provide inaccurate information Do not wish to offend the interviewer Lie about activities because ashamed of them Genuinely not remember

Current Weaknesses in Consumer Behaviour Research in Tourism

4. The difficulties for tourists to answer the standard

questions Where & when did you first here about the destination? Are you likely to use this airline again in future?

4. The problem of when to ask people question Before/During /After

4. The difficulties of finding a sample of tourists that is representative of tourists as a whole Seasonality of demand different types of tourists Tourists are all individual Interviewer bias

Current Weaknesses in Consumer Behaviour Research in Tourism (cont.)

The Future of Consumer Behaviour Research in Tourism

a) Focus group: group of consumer with similar age, sex and

income, etc. Use to elicit new attitudes and perceptions. Consist of 8-10 respondents focused on a particular product. Respondents are recruited on the basis of a carefully drawn

consumer profile (screener questionaire) based on specifications. E.g. Give a brochure and ask their opinion of a destination that a

tour operator is tending to offer.

1. The development of more sophisticated techniques for collecting qualitative

data in tourism;

b) Observation: help solve the problem where tourists prefer to

do one thing but in reality do another. To gain insight into potentially effective product, promotion, price,

and distribution decision. By watching the consumer in the process of buying and using

productsb) User diaries: consumers are asked to recount their activities

and impressions about their holidays.c) Informal conversation with tourists: a way of gauging tourists’

views and perceptions by using subjectivity of the technique. Consumer feel more relax and friendly

1. The development of more sophisticated techniques for collecting

qualitative data in tourism (cont.)

e) Survey: a written instrument that asks consumers to respond to a predetermined set of research questions. Surveys can be conducted in person, mail, phone or web.

f) Interview: direct contact with consumers, more appropriate than focus groups when the topic is sensitive, embarrassing confidential, or emotionally charged.

“pick consumer’s brain”e) Experiments: to determine whether certain marketing

phenomena affect consumer behavior. eg. Package, color, room temperature, etc.

1. The development of more sophisticated techniques for collecting

qualitative data in tourism (cont.)

h) Questionaire :

A disguised questionnaire sometimes yields more truthful answers and avoids response that respondents may think are expected

Can be open-ended or close-ended questions Open-ended more insightful information, but are more difficult to

code and analyze Close-ended simple to analyze

Format, wording and sequence of question should be carefully design (avoid biasing)

Usually offer respondents confidentiality or anonymity to dispel any reluctance about self-disclosure.

1. The development of more sophisticated techniques for collecting

quantitative data in tourism

a) Wider dissemination of the work of academic

researches and the report produced by organizations.

b) Using feedback and perceptions from intermediaries such as travel agent.

c) Undertaking more systematic scanning of their business environment which influece tourist behaviour

2. Making greater use of secondary & individual sources

The implications of concerning with tourist satisfaction mean a greater role for;Research which helps to identify where ‘critical incidents’ occur in tourism and consumer’s response to them.

E.g. employers responding when the service delivery system fails

Interviews with consumers before, during and after their consumption of the product.

Before expectation During experience After future purchase

3. Satisfaction-related research

Telephone Survey “Hello, this is ____ and I’m calling from XXX. We are

conducting a study on behalf of YYY to measure customer satisfaction among YYY customers. This is not a sales call. Your responses will be used for statistical and research purposes and will be kept completely confidential.”

1. Respondent available Continue 2. No one by that name Thank and Terminate 3. Respondent not available/ not a good time Set time to call back 4. Soft Refusal Thank and Terminate 5. Hard Refusal Thank and Terminate

Example

Section 1: Screening Questions

1. Do you or does anyone in your family currently work in the following industry? (Read A – C)

A Market research company B Advertising/Public Relations/Media company C Telecommunications Industry1) Yes Thank and terminate2) No Continue3) Refused Thank and terminte

Example

Are you the (Read 1 – 3)?

1. Owner/Subscriber of this hotel/serviced apartment Continue

2. Frequently user/Member of this hotel/serviced apartment Continue

3. None of the above Thank and Terminate 4. Refused Thank and Terminate

Example

Could you tell us your age? How long have you been an XXX customer? Have you ever been interviewed by The Gallup

Organization regarding XXX customer satisfaction? Yes Thank and terminate No Continue Refused Thank and terminate

Example

Taking into account all the products and services you

receive from us, how satisfied are you with XXX overall? (use a five-point scale)

How likely are you to continue to be XXX customer? How likely are you to recommend XXX to a friend or

associate? Is XXX a name you can always trust? XXX always delivers on what they promise? XXX always treats me fairly? If a problem arises, I can always count on XXX to

reach a fair and satisfactory resolution?

Example

1. Discuss the main problems involved in carrying out

customer questionnaire surveys2. Evaluate the ways in which tourism organizations

can use the results of marketing research to improve their marketing

3. Discuss the advantages and disadvantages of qualitative and quantitative research in tourism

Discussion

Main problems involved in carrying out customer

questionnaire surveys The interviewees don’t want to participate : no time,

unconfident in interviewer The interviewees are screened out due to the

qualification doesn’t meet requirement The questionnaire is too long and time-consuming.

Thus, require proper atmosphere and environment ex. seat, and quiet surrounding

Evaluate the ways in which tourism organizations

can use the results of marketing research to improve their marketing Know the profile to target customers who are the potential

segment Able to identify the business direction develop the

suitable marketing strategy to meet organization objective & goal

Create new products or services ex. new holiday package in summer for teenager providing with enthusiastic facilities

Discuss the advantages and disadvantages of

qualitative and quantitative research in tourism Quantitative ex. Observation method

Advantages measurable comparable in graph presentation solid result and high significant level Disadvantages cannot identify the reason of purchasing

behaviour need statistic tool to analyze the data

Qualitative ex. Interview, survey, focus group method

Advantages get more customer insight get the feelings of the interviewees quick survey is suitable to check the market

movement within a limited time period Disadvantages difficult to identify in number, scaling and

measurement find difficulties in data collection process;

obstacle in finding a proper time and place to interview